21st May 2019 11:51
LONDON (Alliance News) - Non-Standard Finance PLC said at its annual general meeting Tuesday it has seen "strong" loan book growth since the start of 2019 and will continue to engage with the Provident Financial PLC shareholders who have yet to accept its hostile takeover bid.
On Wednesday last week, Non-Standard Finance announced its GB1.3 billion offer for fellow sub-prime lender Provident had become unconditional - after lowering its acceptance condition to 50% from 90%. As of Wednesday, 53% of Provident shares had taken up the offer.
Non-Standard Finance launched its hostile bid for Provident in March, which has become increasingly acrimonious since. Provident has objected to the takeover, calling it "fraught with risks". In return, the bidder, has accused Provident of making "incorrect assertions" about Non-Standard Finance's capital position.
Non-Standard Finance said that - having passed the milestone - it will approach Provident again in the hope of establishing "pragmatic and constructive dialogue".
Speaking at its annual general meeting Tuesday, Non-Standard Finance said: "This is an exciting moment for our company. We have a clear transformation plan for the enlarged group and are ready to start work on implementing it so that we can start to build a brighter future for all stakeholders."
FTSE 100-listed wealth manager Schroders PLC, which holds a 15% stake in Provident, has previously said the offer is "not in the best interest" of Provident shareholders. Schroders said it believes the minority shareholders of Provident "are not being protected".
The majority of Provident shareholders have accepted the offer but these Provident shareholders also collectively make up the majority of Non-Standard Finance shareholders, holding shares in both companies.
Non-Standard Finance also updated the market on its current trading Tuesday, saying it has seen "continued strong loan book growth" since the start of the year.
Non-Standard Finance has also seen a "further" year-on-year reduction in the overall rate of impairment - giving the lender optimism for its full year.
"Having already opened all seven of the new branches scheduled for this year, Everyday Loans has continued to enjoy strong loan book growth through a network of branches that now total 73 compared with 36 when we acquired Everyday Loans in 2016. In guarantor loans, the recent trends in loan book growth have also continued whilst Loans at Home has seen a modest increase in risk adjusted margins as we improve the mix of lending towards shorter-term loans which also reduces the total cost of credit for customers," Non-Standard Finance said.
Shares in Non-Standard Finance were up 1.4% Tuesday at 48.90 pence each. Provident was trading 1.4% higher at 486.70p.
Related Shares:
PFG.LNSF.L